TaxTMI 
TaxTMI 
2017 (2) TMI 813
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....case is that the dealer carries on business in gold and silver ornaments on retail basis having his shop at Aska Town of Ganjam district. He has not been registered under the provisions of Orissa Value Added Tax Act (in short OVAT Act). In response to the notice, the dealer appeared with his books of accounts for verification and the Assessing Officer has confronted him with a new case report being submitted by the Sales Tax Officer (Investigation Unit, Berhampur), as per new case report, a person, namely, Sri Gunjaamali Pattnaik went to the shop of the dealer and purchased two pairs of payal and other articles amounting to Rs. 4,980/- but the dealer instead of issuing a retail invoice has given him estimation slip. In order to cross verify....
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....irst appeal before the Deputy Commissioner, Sales Tax and challenged the same, while challenging, the cash recovered from the cash box amounting to Rs. 45,000/- has been said to be his personal money as also he has challenged the determination of his stock available in his shop. The dealer also challenged the imposition of penalty Us.44(i) of the OVAT Act. The Deputy Commissioner, Sales Tax heard the matter and on verification he did not accept the daily sale at the rate of Rs. 30,000/- as determined by the Assessing Officer and he limited the same to Rs. 10,000/- for the period 11.01.2007 to 31.03.2007 and Rs. 15,000/- from 1.4.2007 to 29.02.2008 which came to Rs. 53,85,000/- and determined 1% tax on the said value and it came to Rs. 53,8....
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....sed by the parties, both in appeal and cross appeal, has dismissed the same and confirmed the order passed by the Deputy Commissioner, Sales Tax, against which the instant revision application has been filed by the dealer invoking the jurisdiction of this court conferred U/s.80 of the OVAT Act. 4. The dealer - petitioner has taken the following question of law for consideration by this court:- (a) Whether in the facts and circumstances of the case the Tribunal has addressed the issues before it while disposing of the appeal under the OVAT Act? (b) Whether the findings arrived at by the Deputy Commissioner, Sales Tax in determining the daily average sale of the petitioner retain any lawful and valid nexus or the same is based on presumpti....
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.... Unit, Berhampur submitted a new case report bearing No.28/2007-08 which alleged that the dealer was carrying on business of gold and silver Jewellery and being liable for registration was carrying business without getting registered. The dealer was issued statutory notice and in response to the same, he appeared before the Sales Tax Officer and produced the books of account of his business which indicates that he started his business on 12.1.2007 and his first sale started on 24.1.2007, but however, the dealer had not produced any books of account before the Investigation Unit Officer. The Assessing Officer has decided to the best of his judgment that the daily average sale of the dealer is Rs. 30,000/-. The date of start of business has ....
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....ted by the investigating officer basing upon the credit sale is not accepted because gold and silver are such a goods which cannot be sold through out the year, in marriage season its sale is high and in other season its sale is low. So far as physical stock of gold and silver, the first appellate authority has not accepted the plea recorded by the Assessing Officer so far as it relates to the estimation of the investigating officer regarding physical stock of gold ornaments at Rs. 10,21,200/- @ Rs. 1200/- per gram and silver stock at Rs. 2,51,440 @ Rs. 20/- per gram, hence extra demand of Rs. 1,14,600/- and penalty of Rs. 1,14,600/- of the OVAT Act has been found to be illegal and unwarranted, but the first appellate authority has found j....
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....e by the Assessing Officer and deferring with his order and in agreement with the order passed by the first appellate authority, accepting the reasoning that gold and silver ornaments are sold mostly during marriage season and as such the estimation made by the first appellate authority for a particular period at Rs. 10,000/- from 11.1.2007 to 31.3.2007 and Rs. 15,000/- from 1.4.2007 to 29.2.2008 has been held to be justified which resulted in reduction of demand to Rs. 1,07,700/- which also includes penalty U/s.44(i) of the OVAT Act. The second appellate authority has also came to find while answering the ground of the assessee for imposition of penalty U/s.44(i) of the OVAT Act by holding therein that the penalty U/s.44(i) of the OVAT Ac....